iSoft’s future uncertain after more losses

Troubled healthcare IT firm iSoft, a key supplier to the NHS’s £12.4bn National Programme for IT (NPfIT), has admitted it may not survive after six-month results showed further losses.

Troubled healthcare IT firm iSoft, a key supplier to the NHS’s £12.4bn National Programme for IT (NPfIT), has admitted it may not survive after six-month results showed further losses.

The firm revealed pre-tax losses of £14.3m in the six months to 31 October, with revenues down by 11.6%. The losses figure includes £11.6m of exceptional costs relating to restructuring, including redundancies and the closure of the firm’s former Manchester head office.

The results announcement said the supplier, which is contracted to provide its Lorenzo care records system as a core part of the NHS scheme, was “now delivering NPfIT milestones on schedule”.

Chairman and acting chief executive John Weston added that iSoft’s position as part of NPfIT had been “stabilised”, while a new agreement with lead contractor CSC “underpins and de-risks the development programme” for Lorenzo.

“Management has been strengthened at all levels and significant action has been taken to reduce costs,” he said.

But the company, which was put up for sale in October, has admitted it may not survive.

In a statement released with the results, iSoft warned, “In preparing these projections the directors recognise that there are material uncertainties that may cast significant doubt on the Group’s ability to continue as a going concern.”

The software firm is currently under investigation by the Financial Services Authority after irregularities were found in its 2004 and 2005 accounts.

Comment on this article: computer.weekly@rbi.co.uk

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